On it’s path to global domination, Volkswagen has made another official takeover bid, this time for German heavy truck maker MAN.
VW said that on May 9th, that it held more than 30 percent stock in MAN, which under German law, means the company was required to make a bid on all remaining shares in the truck company.
VW’s offer to third party shareholders for the remaining stock, included a price of 95 Euros ($136.80) for ordinary shares and 59.90 Euros ($86.81) for preferred shares.
The acquisition of MAN is part of a wider plan for VW to create a commercial vehicle powerhouse, having already acquired controlling interest in Swedish truck maker Scania.
However, anti-trust laws have placed a few obstacles in the path of bringing MAN, Scania and VW’s own commercial operations under a single umbrella. Nevertheless, the company remains undeterred and is looking to continue the process bit by bit, acquiring between 35 to 40 percent of the outstanding shares in MAN.
This will give VW multiple strategic options to pursue as well as potentially saving some 200 million Euros per year thanks to joint purchasing of all three brands. Both MAN and Scania are somewhat unique in the commercial vehicle sector in that they don’t rely on proprietary sources for major components such as engines, choosing instead to build their own. This aspect alone will give the new triumvirate a very solid position in the commercial vehicle market.
Besides acquiring MAN, VW is also finalizing its takeover of Porsche AG, which, once completed will become the company’s 10th individual brand.